AUSTIN (Marcus & Millichap) – Austin’s commercial real estate sector continues its upward trend, according to a recent report by Marcus & Millichap Real Estate Investment Services Inc.
Some report highlights:
- Employment growth here will reach 27,000 jobs this year, expanding payrolls by 3.6 percent, one of the strongest growth rates in the country. The market’s ties to technology will generate over 5,000 professional and business services jobs and nearly 1,000 manufacturing jobs.
- Builders will complete 930,000 sf of retail space this year, expanding inventory by 1.7 percent. Besides new developments within the metro, operators will compete with the two million sf of new space under construction adjacent to the metro.
- This year, retail vacancy will fall to 8.4 percent, an annual decrease of 50 basis points. Retailers will absorb 1.1 million sf of space, the largest annual figure since 2007.
- Owners will regain some leverage during lease negotiations this year, facilitating a 1.1 percent rise in asking rents to $19.69 per square foot. Effective rents will tick up 1.6 percent to $17.73 per sf, pulling concessions down to 10 percent of asking rents.